This section is from the book "Elementary Banking", by John Franklin Ebersole. Also available from Amazon: Elementary Banking.
A transaction showing a decrease in the balance carried in the New York bank might be as follows: A customer comes in and buys New York exchange for $5,000 in the form of a check drawn on the Tenth National Bank. The entries to cover that transaction would be:
$5,000 | ||
or | ||
Debit: Due to Depositors (37) (that is, customer's account) | 5,000 | |
Credit: Due from Tenth National Bank, New York (18) ........... | $5,000 |
The general ledger account of the New York bank is really the only bookkeeping record required, provided its space permits showing all debits and credits.
 
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